THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND 
IMPOSITION OF TAX ACT, 2015 
____________ 

ARRANGEMENT OF SECTIONS 
____________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

CHAPTER II 

BASIS OF CHARGE 

3.  Charge of tax. 
4.  Scope of total undisclosed foreign income and asset. 
5.  Computation of total undisclosed foreign income and asset. 

CHAPTER III 

TAX MANAGEMENT 

6.  Tax authorities. 
7.  Change of incumbent. 
8.  Powers regarding discovery and production of evidence. 
9.  Proceedings before tax authorities to be judicial proceedings. 
10.  Assessment. 
11.  Time limit for completion of assessment and reassessment. 
12.  Rectification of mistake. 
13.  Notice of demand. 
14.  Direct assessment or recovery not barred. 
15.  Appeals to the Commissioner (Appeals). 
16.  Procedure to be followed in appeal. 
17.  Powers of Commissioner (Appeals). 
18.  Appeals to Appellate Tribunal. 
19.  Appeal to High Court. 
20.  Case before High Court to be heard by not less than two Judges. 
21.  Appeal to Supreme Court. 
22.  Hearing before Supreme Court. 
23.  Revision of orders prejudicial to revenue. 
24.  Revision of other orders. 
25.  Tax to be paid pending appeal. 
26.  Execution of order for costs awarded by Supreme Court. 
27.  Amendment of assessment on appeal. 
28.  Exclusion of time taken for obtaining copy. 

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SECTIONS 

29.  Filing of appeal by tax authority. 
30.  Recovery of tax dues by Assessing Officer. 
31.  Recovery of tax dues by Tax Recovery Officer. 
32.  Modes of recovery of tax dues. 
33.  Tax Recovery Officer by whom recovery of tax dues is to be effected. 
34.  Recovery of tax dues in case of a company in liquidation. 
35.  Liability of manager of a company. 
36.  Joint and several liability of participants. 
37.  Recovery through State Government. 
38.  Recovery of tax dues in pursuance of agreements with foreign countries or specified territory. 
39.  Recovery by suit or under other law not affected. 
40.  Interest for default in furnishing return and payment or deferment of advance tax. 

CHAPTER IV 

PENALTIES 

41.  Penalty in relation to undisclosed foreign income and asset. 
42.  Penalty for failure to furnish return in relation to foreign income and asset. 
43.  Penalty for failure to furnish in return of income, an information or furnish inaccurate particulars 

about an asset (including financial interest in any entity) located outside India. 

44.  Penalty for default in payment of tax arrear. 
45.  Penalty for other defaults. 
46.  Procedure. 
47.  Bar of limitation for imposing penalty. 

CHAPTER V 

OFFENCES AND PROSECUTIONS 

48.  Chapter not in derogation of any other law or any other provision of this Act. 
49.  Punishment for failure to furnish return in relation to foreign income and asset. 
50.  Punishment for failure to furnish in return of income, any information about an asset (including 

financial interest in any entity) located outside India. 

51.  Punishment for wilful attempt to evade tax. 
52.  Punishment for false statement in verification. 
53.  Punishment for abetment. 
54.  Presumption as to culpable mental state. 
55.  Prosecution to be at instance of Principal Chief Commissioner or Principal Director General or 

Chief Commissioner or Director General or Principal Commissioner or Commissioner. 

56.  Offences by companies. 
57.  Proof of entries in records of documents. 
58.  Punishment for second and subsequent offences. 

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CHAPTER VI 

TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS 

SECTIONS 

59.  Declaration of undisclosed foreign asset. 
60.  Charge of tax. 
61.  Penalty. 
62.  Manner of declaration. 
63.  Time for payment of tax. 
64.  Undisclosed foreign asset declared not to be included in total income. 
65.  Undisclosed foreign asset declared not to affect finality of completed assessments. 
66.  Tax in respect of voluntarily disclosed asset not refundable. 
67.  Declaration not admissible in evidence against declarant. 
68.  Declaration by misrepresentation of facts to be void. 
69.  Exemption from wealth-tax in respect of assets specified in declaration. 
70.  Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax Act. 
71.  Chapter not to apply to certain persons. 
72.  Removal of doubts. 

CHAPTER VII 

GENERAL PROVISIONS 
73.  Agreement with foreign countries or specified territories. 
74.  Service of notice generally. 
75.  Authentication of notices and other documents. 
76.  Notice deemed to be valid in certain circumstances. 
77.  Appearance by approved valuer in certain matters. 
78.  Appearance by authorised representative. 
79.  Rounding off of income, value of asset and tax. 
80.  Congnizance of offences. 
81.  Assessment not to be invalid on certain grounds. 
82.  Bar of suits in civil courts. 
83.  Income-tax papers to be available for purposes of this Act. 
84.  Application of provisions of Income-tax Act. 
85.  Power to make rules. 
86.  Power to remove difficulties. 
87.  Amendment of section 2 of Act 54 of 1963. 
88.  Amendment of Act of 15 of 2003. 

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THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND 
IMPOSITION OF TAX ACT, 2015 
ACT NO. 22 OF 2015 

[26th May, 2015.] 
An  Act  to  make  provisions  to  deal  with  the  problem  of  the  Black  money  that  is  undisclosed 
foreign  income  and  assets,  the  procedure  for  dealing  with  such  income  and  assets  and  to 
provide for imposition of tax on any undisclosed foreign income and asset held outside India 
and for matters connected therewith or incidental thereto. 
BE it enacted by Parliament in the Sixty-sixth Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Black  Money 

(Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. 

(2) It extends to the whole of India. 

(3) Save as otherwise provided in this Act, it shall come into force on the 1st day of April, 2016. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(1)  ―Appellate  Tribunal‖  means  the  Appellate  Tribunal  constituted  under  section  252  of  the 

Income-tax Act; 

1[(2) ―assessee‖ means a person,— 

(a) being a resident in India within the meaning of section 6 of the Income-tax Act, 1961 (43 

of 1961) in the previous year; or 

(b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of 
section  6  of  the  Income-tax  Act,  1961  (43  of  1961)  in  the  previous  year,  who  was  resident  in 
India  either  in  the  previous  year  to  which  the  income  referred  to  in  section  4  relates;  or  in  the 
previous year in which the undisclosed asset located outside India was acquired: 

Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall 

be determined without giving effect to the provisions of clause (c) of section 72;]  

(3) ―assessment‖ includes reassessment; 
(4) ―assessment  year‖  means  the  period of twelve  months  commencing  on  the 1st day  of  April 

every year; 

(5)  ―Board‖  means  the  Central  Board  of  Direct  Taxes  constituted  under  the  Central  Boards  of 

Revenue Act, 1963 (54 of 1963); 

(6) ―Income-tax Act‖ means the Income-tax Act, 1961 (43 of 1961); 

(7) ―participant‖ means— 

(a) a partner in relation to a firm; or 

(b) a member in relation to an association of persons or body of individuals; 

(8) ―prescribed‖ means prescribed by rules made under this Act; 

(9) ―previous year‖ means— 

(a) the period beginning with the date of setting up of a business and ending with the date of 
the  closure  of  the  business  or  the  31st  day  of  March  following  the  date  of  setting  up  of  such 
business, whichever is earlier; 

1. Subs. by Act 23 of 2019, s. 205, for clause (2) (w.e.f. 1-7-2015). 

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(b) the period beginning with the date on which a new source of income comes into existence 
and ending with the date of closure of the business or the 31st day of March following the date on 
which such new source comes into existence, whichever is earlier; 

(c)  the  period  beginning  with  the  1st  day  of  the  financial  year  and  ending  with  the  date of 
discontinuance of the business other than business referred to in clause (b) or dissolution of an 
unincorporated body or liquidation of a company, as the case may be; or 

(d) the period of twelve months commencing on the 1st day of April of the relevant year in 

any other case, 

and which immediately precedes the assessment year. 

(10)  ―resident‖  means a  person  who  is resident in  India  within the  meaning  of section  6  of the 

Income-tax Act; 

(11) ―undisclosed asset located outside India‖ means an asset (including financial interest in any 
entity) located outside India, held by the assessee in his name or in respect of which he is a beneficial 
owner,  and  he  has  no  explanation  about  the  source  of  investment  in  such  asset  or  the  explanation 
given by him is in the opinion of the Assessing Officer unsatisfactory; 

(12) ―undisclosed foreign income and asset‖ means the total amount of undisclosed income of an 
assessee  from  a  source  located  outside  India  and  the  value  of  an  undisclosed  asset  located  outside 
India, referred to in section 4, and computed in the manner laid down in section 5; 

(13) ―unincorporated body‖ means— 

(a) a firm; 

(b) an association of persons; or 

(c) a body of individuals; 

(14) ―value of an undisclosed asset‖ shall have the meaning assigned to it in sub-section (2) of 

section 3; 

(15) all other words and expressions used herein but not defined and defined in the Income-tax 

Act shall have the meanings respectively assigned to them in that Act. 

CHAPTER II 

BASIS OF CHARGE 

3.  Charge  of  tax.—(1)  There  shall  be  charged  on  every  assessee  for  every  assessment  year 
commencing on or after the 1st day of April, 2016, subject to the provisions of this Act, a tax in respect of 
his total undisclosed foreign income and asset of the previous year at the rate of thirty per cent. of such 
undisclosed income and asset: 

Provided  that  an  undisclosed  asset  located  outside  India  shall  be  charged  to  tax  on  its  value  in  the 

previous year in which such asset comes to the notice of the Assessing Officer. 

(2) For the purposes of this section, ―value of an undisclosed asset‖ means the fair market value of an 

asset (including financial interest in any entity) determined in such manner as may be prescribed. 

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4. Scope of total undisclosed foreign income and asset.—(1) Subject to the provisions of this Act, 

the total undisclosed foreign income and asset of any previous year of an assessee shall be,— 

(a) the income from a source located outside India, which has not been disclosed in the return of 
income  furnished  within  the  time  specified  in  Explanation  2  to  sub-section  (1)  or  under  
sub-section (4) or sub-section (5) of section 139 of the Income-tax Act; 

(b) the income, from a source located outside India, in respect of which a return is required to be 
furnished under section 139 of the Income-tax Act but no return of income has been furnished within 
the time specified in Explanation 2 to sub-section (1) or under sub-section (4) or sub-section (5) of 
section 139 of the said Act; and 

(c) the value of an undisclosed asset located outside India. 

(2) Notwithstanding anything contained in sub-section (1), any variation made in the income from a 
source outside India in the assessment or reassessment of the total income of any previous year, of the 
assessee  under  the  Income-tax  Act  in  accordance  with  the  provisions  of  section  29  to  section  43C  or 
section  57  to  section  59  or  section  92C  of  the  said  Act,  shall  not  be  included  in  the  total  undisclosed 
foreign income. 

(3) The  income  included in  the total undisclosed  foreign  income  and  asset  under  this  Act  shall  not 

form part of the total income under the Income-tax Act. 

5.  Computation  of  total  undisclosed  foreign  income  and  asset.—(1)  In  computing  the  total 

undisclosed foreign income and asset of any previous year of an assessee,— 

(i) no deduction in respect of any expenditure or allowance or set off of any loss shall be allowed 
to  the  assessee,  whether  or  not  it  is  allowable  in  accordance  with the  provisions  of  the  Income-tax 
Act; 

(ii) any income,— 

(a) which has been assessed to tax for any assessment year under the Income-tax Act prior to 

the assessment year to which this Act applies; or 

(b) which is assessable or has been assessed to tax for any assessment year under this Act, 

shall be reduced from the value of the undisclosed asset located outside India, if, the  assessee furnishes 
evidence  to  the  satisfaction  of  the  Assessing  Officer  that  the  asset  has  been  acquired  from  the  income 
which has been assessed or is assessable, as the case may be, to tax. 

(2)  The  amount  of  deduction  referred  to  in  clause  (ii)  of  sub-section  (1)  in  case  of  an  immovable 
property shall be the amount which bears to the value of the asset as on the first day of the financial year 
in which it comes to the notice of the Assessing Officer, the same proportion as the assessable or assessed 
foreign income bears to the total cost of the asset. 

Illustration 

A house property located outside India was acquired by an assessee in the previous year 2009-10 for 
fifty lakh rupees. Out of the investment of fifty lakh rupees, twenty lakh rupees was assessed to tax in the 
total income of the previous year 2009-10 and earlier years. Such undisclosed asset comes to the notice of 
the Assessing Officer in the year 2017-18. If the value of the asset in the year 2017-18 is one crore rupees, 
the amount chargeable to tax shall be A-B=C 

where, 

A=Rs.1 crore, B=Rs. (100 x 20/50) lakh= Rs.40 lakh, C=Rs. (100-40) lakh=Rs.60 lakh. 

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CHAPTER III 

TAX MANAGEMENT 

6. Tax authorities.—(1) The income-tax authorities specified in section 116 of the Income-tax Act 

shall be the tax authorities for the purposes of this Act. 

(2) Every such authority shall exercise the powers and perform the functions of a tax authority under 

this Act in respect of any person within his jurisdiction. 

(3) Subject to the provisions of sub-section (4), the jurisdiction of a tax authority under this Act shall 
be the same as he has under the Income-tax Act by virtue of orders or directions issued under section 120 
of  that  Act  (including  orders  or  directions  assigning  the  concurrent  jurisdiction)  or  under  any  other 
provision of that Act. 

(4) The tax authority having jurisdiction in relation to an assessee who has no income assessable to 
income-tax under the Income-tax Act shall be the tax authority having jurisdiction in respect of the area in 
which the assessee resides or carries on its business or has its principal place of business. 

(5) Section 118 of the Income-tax Act and any notification issued thereunder shall apply in relation to 
the  control  of  tax  authorities  as  they  apply  in  relation  to  the  control  of  the  corresponding  income-tax 
authorities, except to the extent to which the Board may, by notification in the Official Gazette, otherwise 
direct in respect of any tax authority. 

7.  Change  of  incumbent.—(1)  The  tax  authority  who  succeeds  another  authority  as  a  result  of 
change in jurisdiction or for any other reason, shall continue the proceedings from the stage at which it 
was left by his predecessor. 

(2)  The  assessee  in  such  a  case  may  be  given  an  opportunity  of  being  heard,  if  he  so  requests  in 

writing, before passing any order in his case. 

8.  Powers  regarding  discovery  and  production  of evidence.— (1) The  prescribed  tax  authorities 
shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil 
Procedure, 1908 (5 of 1908), while trying a suit in respect of the following matters, namely:— 

(a) discovery and inspection; 

(b)  enforcing  the  attendance  of  any  person,  including  any  officer  of  a  banking  company  and 

examining him on oath; 

(c) compelling the production of books of account and other documents; and 

(d) issuing commissions. 

(2)  For  the  purposes  of  making  any  inquiry  or  investigation,  the  prescribed  tax  authority  shall  be 
vested with the powers referred to in sub-section (1), whether or not any proceedings are pending before 
it. 

(3) Any tax authority prescribed for the purposes of sub-section (1) or sub-section (2) may, subject to 
the rules made in this behalf, impound any books of account or other documents produced before it and 
retain them in its custody for such period as it thinks fit. 

(4) Any tax authority below the rank of Commissioner shall not— 

(a) impound any books of account or other documents without recording his reasons for doing so; 

or 

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(b) retain in his custody any such books or documents for a period exceeding thirty days without 
obtaining  the  approval  of  the  Principal  Chief  Commissioner  or  the  Chief  Commissioner  or  the 
Principal Commissioner or the Commissioner. 

9. Proceedings before tax authorities to be judicial proceedings.— (1) Any proceeding under this 
Act before a tax authority shall be deemed to be a judicial proceeding within the meaning of section 193 
and section 228 and for the purposes of section 196 of the Indian Penal Code (45 of 1860). 

(2) Every tax authority shall be deemed to be a civil court for the purposes of section 195, but not for 

the purposes of Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

10. Assessment.—(1) For the purposes of making an assessment or reassessment under this Act, the 
Assessing Officer may, on receipt of an information from an income-tax authority under the Income-tax 
Act or any other authority under any law for the time being in force or on coming of any information to 
his notice, serve on any person, a notice requiring him on a date to be specified to produce or cause to be 
produced such accounts or documents or evidence as the Assessing Officer may require for the purposes 
of  this  Act  and  may,  from  time  to  time,  serve  further  notices  requiring  the  production  of  such  other 
accounts or documents or evidence as he may require. 

(2)  The  Assessing  Officer  may  make  such  inquiry,  as  he  considers  necessary,  for  the  purpose  of 
obtaining  full  information  in  respect  of  undisclosed  foreign  income  and  asset  of  any  person  for  the 
relevant financial year or years. 

(3)  The  Assessing  Officer,  after  considering  such  accounts,  documents  or  evidence,  as  he  has 
obtained under sub-section (1), and after taking into account any relevant material which he has gathered 
under  sub-section  (2)  and  any  other  evidence  produced  by  the  assessee,  shall  by  an  order  in  writing, 
assess  1[or  reassess]  the  undisclosed  foreign  income  and  asset  and  determine  the  sum  payable  by  the 
assessee. 

(4) If any person fails to comply with all the terms of the notice under sub-section (1), the Assessing 
Officer shall, after taking into account all the relevant material which he has gathered and after giving the 
assessee  an  opportunity  of  being  heard,  make  the  assessment  1[or  reassessment]  of  undisclosed  foreign 
income and asset to the best of his judgment and determine the sum payable by the assessee. 

11.  Time  limit  for  completion  of  assessment  and  reassessment.—(1)  No  order  of  assessment  or 
reassessment shall be made under section 10 after the expiry of two years from  the end of the financial 
year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer. 

(2) Notwithstanding anything contained in sub-section (1), an order of fresh assessment in pursuance 
of an order passed under section 18 setting aside or cancelling an assessment, may be made at any time 
before the expiry of the period of two years from the end of the financial year in which the order under 
section 18 is received by the Principal Commissioner or the Commissioner. 

(3)  The  provisions  of  sub-section  (1)  shall  not  apply  to  the  assessment  or  reassessment  made  in 
consequence of, or to give effect to, any finding or direction contained in an order under section 15 or 
section 18 or section 19 or section 22 of this Act or in an order of any court in a proceeding otherwise 
than by way of appeal under this Act and such assessment or reassessment may, subject to the provisions 
of sub-section (2), be completed at any time, before the expiry of the period of two years from the end of 
the financial year in which such order is received by the Principal Commissioner or the Commissioner. 

Explanation 1.—In computing the period of limitation for the purpose of this section— 

(i) the time taken in reopening the whole or any part of the proceeding; or 

(ii) the period during which the assessment proceeding is stayed by an order or injunction of any 

court; or 

1. Ins. by Act 23 of 2019, s. 206 (w.e.f. 1-7-2015). 

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(iii)  the  period  commencing  from  the  date  on  which  a  reference  or  first  of  the  references  for 
exchange of information is made by an authority competent under an agreement referred to in section 
90 or section 90A of the Income-tax Act or under section 73 of this Act and ending with the date on 
which the Principal Commissioner or the Commissioner last receives, the information so requested or 
a period of one year, whichever is less, 

shall be excluded: 

Provided  that  where  immediately  after  the  exclusion  of  the  aforesaid  time  or  period,  the  period  of 
limitation  referred  to  in  sub-sections  (1),  (2)  and  (3)  available  to  the  Assessing  Officer  for  making  an 
order of assessment or reassessment, as the case may be, is less than sixty days, such remaining period 
shall  be  extended  to  sixty  days  and  the  aforesaid  period  of  limitation  shall  be  deemed  to  be  extended 
accordingly. 

Explanation  2.—Where,  by  an  order  referred to in sub-section  (3), any  undisclosed foreign income 
and  asset  is  excluded  from  the  total  undisclosed  foreign  income  and  asset  for  an  assessment  year  in 
respect  of  an  assessee,  then,  an  assessment  of  such  undisclosed  foreign  income  and  asset  for  another 
assessment  year  shall,  for  the  purposes  of  section  10  and  this  section,  be  deemed  to  be  one  made  in 
consequence of, or to give effect to, any finding or direction contained in the said order. 

12. Rectification of mistake.—(1) A tax authority may amend any order passed by it under this Act 

so as to rectify any mistake apparent from the record. 

(2) No amendment under this section shall be made after a period of four years from the end of the 

financial year in which the order sought to be amended was passed. 

(3)  The  tax  authority  shall  not  make  any  amendment,  which  has  the  effect  of  enhancing  the 
undisclosed  foreign  income  and  asset  or  reducing  a  refund  or  otherwise  increasing  the  liability  of  the 
assessee, unless the authority concerned has given to the assessee an opportunity of being heard. 

(4) The tax authority concerned may make an amendment under this section— 

(a) on its own motion; or 

(b) on an application made to it by the assessee or, as the case may be, by the Assessing Officer. 

(5) Any application received by the tax authority for amendment of an order shall be decided within a 

period of six months from the end of the month in which such application is received by it. 

(6) In a case where the order has been made in an appeal or revision, the power of the tax authority to 

amend the order shall be restricted to matters other than those decided in appeal or revision. 

13. Notice of demand.—Any sum payable in consequence of any order made under this Act shall be 
demanded by a tax authority by serving upon the assessee a notice of demand in such form and manner as 
may be prescribed. 

14.  Direct  assessment  or  recovery  not  barred.—Nothing  in  this  Chapter  shall  prevent  either  the 
direct  assessment  of  the  person  on  whose  behalf  or  for  whose  benefit  the  undisclosed  income  from  a 
source  located  outside  India  is  receivable  or  undisclosed  asset  located  outside  India  is  held,  or  the 
recovery from such person of the tax or any other sum of money payable in respect of such income and 
asset. 

15. Appeals to the Commissioner (Appeals).—(1) Any person, – (a) objecting to the amount of tax 
on undisclosed foreign income and asset for which he is assessed by the Assessing Officer; or (b) denying 
his  liability  to  be  assessed  under  this  Act;  or  (c)  objecting  to  any  penalty  imposed  by  the  Assessing 
Officer;  or  (d)  objecting  to  an  order  of  rectification  having  the  effect  of  enhancing  the  assessment  or 

9 

 
reducing the refund; or (e) objecting to an order refusing to allow the claim made by the assessee for a 
rectification under section 12, may appeal to the Commissioner (Appeals). 

(2) Every appeal shall be filed in such form and verified in such manner and be accompanied by a fee 

as may be prescribed. 

(3) An appeal shall be presented within a period of thirty days from— 

(a) the date of service of the notice of demand relating to the assessment or penalty, or 

(b) the date on which the intimation of the order sought to be appealed against is served in any 

other case. 

(4) The Commissioner (Appeals) may admit an appeal after the expiration of the period referred to in 

sub-section (3)— 

(a) if he is satisfied that the appellant had sufficient cause for not presenting it within that period; 

and 

(b) the delay in preferring the appeal does not exceed a period of one year. 

(5) The Commissioner (Appeals) shall hear and determine the appeal and, subject to the provisions of 
this Act, pass such orders as he thinks fit and such orders may include an order enhancing the assessment 
or penalty: 

Provided that an order enhancing the assessment or penalty shall not be made unless the assessee has 

been given a reasonable opportunity of being heard. 

16.  Procedure  to  be  followed  in  appeal.—(1)  The  Commissioner  (Appeals)  shall  fix  a  date  and 
place for the hearing of the appeal, and shall give notice of the same to the appellant and the Assessing 
Officer against whose order the appeal is preferred. 

(2) The following shall have the right to be heard at the hearing of the appeal, namely:— 

(a) the appellant, either in person or by an authorised representative; 

(b) the Assessing Officer, either in person or by a representative. 

(3)  The  Commissioner  (Appeals)  may  adjourn  the  hearing  of  the  appeal  whenever  he  considers  it 

necessary or expedient to do so. 

(4) The Commissioner (Appeals) may, before disposing of any appeal, make such further inquiry as 

he thinks fit. 

(5)  The  Commissioner  (Appeals)  may,  during  the  proceedings  before  him,  direct  the  Assessing 

Officer to make an inquiry and report to him on the points arising out of any question of law or fact. 

(6) The Commissioner (Appeals) may, at the hearing of an appeal, allow the appellant to go into any 
ground of appeal not specified in the grounds of appeal, if the Commissioner (Appeals) is satisfied that 
the omission was not wilful or unreasonable. 

(7)  The  order  of  the  Commissioner  (Appeals)  disposing  of  the  appeal  shall  be  in  writing  and  shall 

state the points for determination, the decision thereon and the reasons therefor. 

(8)  Every  appeal  preferred  under  section  15  shall  be  heard  and  disposed  of  by  the  Commissioner 
(Appeals) as expeditiously as possible and endeavour shall be made to dispose of such appeal within a 
period of one year from the end of the financial year in which the appeal is preferred. 

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(9) On the disposal of the appeal, the Commissioner (Appeals) shall communicate the order passed by 
him to the assessee and to the Principal Chief Commissioner or the Chief Commissioner or the Principal 
Commissioner or the Commissioner. 

17.  Powers  of  Commissioner  (Appeals).—(1)  In  disposing  of  an  appeal,  the  Commissioner 

(Appeals) shall have the following powers, namely:— 

(a)  in  an  appeal  against  an  order  of  assessment,  he may  confirm,  reduce,  enhance  or  annul  the 

assessment; 

(b)  in  an  appeal  against  an  order  imposing  a  penalty,  he  may  confirm  or  cancel  1[or  vary  such 

order either to enhance or reduce the penalty]; 

(c)  in  any  other  case,  he  may  determine  the  issues  arising  in  the  appeal  and  pass  such  orders 

thereon, as he thinks fit. 
(2) The Commissioner (Appeals) may consider and decide any matter which was not considered by 

the Assessing Officer. 

(3) The  Commissioner (Appeals)  shall  not enhance an  assessment  or  a  penalty  unless  the  appellant 

has been given an opportunity of being heard. 

(4)  In  disposing  of  an  appeal,  the  Commissioner  (Appeals)  may  consider  and  decide  any  matter 
arising out of the proceedings in which the order appealed against was passed, notwithstanding that such 
matter was not raised before him by the appellant. 

18.  Appeals  to  Appellate  Tribunal.—(1)  Any  assessee  aggrieved  by  an  order  passed  by  the 
Commissioner  (Appeals)  under  section  15,  or  an  order  passed  by  the  Principal  Commissioner  or  the 
Commissioner under any provision of this Act, may appeal to the Appellate Tribunal against such order. 

(2) The Principal Commissioner or the Commissioner may, if he objects to any order passed by the 
Commissioner  (Appeals)  under  any  provision  of  this  Act,  direct  the  Assessing  Officer  to  appeal  to  the 
Appellate Tribunal against the order. 

(3) Every appeal under sub-section (1) or sub-section (2) shall be filed within a period of sixty days 
from the date on which the order sought to be appealed against is communicated to the assessee or to the 
Principal Commissioner or the Commissioner, as the case may be. 

(4)  The  Assessing  Officer  or  the  assessee,  as  the  case  may  be,  on  receipt  of  notice  that  an  appeal 
against  the  order  of  the  Commissioner  (Appeals)  has  been  preferred  under  sub-section  (1)  or  
sub-section (2) by the other party may, notwithstanding that he may not have appealed against such order 
or any part thereof, within thirty days of the receipt of the notice, file a memorandum of cross-objections, 
verified in the prescribed manner, against any part of the order of the Commissioner (Appeals), and such 
memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the 
time specified in sub-section (3). 

(5)  The  Appellate  Tribunal  may  admit  an  appeal  or  permit  the  filing  of  a  memorandum  of  cross-

objections after the expiry of the period referred to in sub-section (3) or sub-section (4), if — 

(a) it is satisfied that there was sufficient cause for not presenting it within that period; and 

(b) the delay in filing the appeal does not exceed a period of one year. 

(6) An appeal to the Appellate Tribunal shall be filed in such form, and verified in such manner, and 
shall, except in the case of an appeal referred to in sub-section (2) or a memorandum of cross-objections 
referred to in sub-section (4), be accompanied by a fee as may be prescribed. 

1. Subs. by Act 23 of 2019, s. 207, for ―such order‖ (w.e.f. 1-9-2019). 

11 

 
 
                                                           
(7)  Subject  to  the  provisions  of  this  Act,  in  hearing  and  making  an  order  on  any  appeal  under  this 
section, the Appellate Tribunal shall exercise the same powers and follow the procedure as it exercises 
and follows in hearing and making an order on any appeal under the Income-tax Act. 

19. Appeal to High Court.—(1) An appeal shall lie to the High Court from every order passed in 
appeal  by  the  Appellate  Tribunal,  if  the  High  Court  is  satisfied  that  the  case  involves  a  substantial 
question of law. 

(2) The Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or 
the Commissioner or an assessee, may file an appeal to the High Court on being aggrieved by any order 
passed by the Appellate Tribunal and such appeal shall be — 

(a)  filed  within  a  period  of  one  hundred  and  twenty  days  from  the  date  on  which  the  order 
appealed against is received by the Principal Chief Commissioner or the Chief Commissioner or the 
Principal Commissioner or the Commissioner or the assessee; 

(b) in the form of a memorandum of appeal precisely stating therein the substantial question of 

law involved. 

(3) The  High  Court  may  admit  an  appeal  after the  expiry  of  the  period  of  one hundred  and  twenty 
days referred to in sub-section (2), if it is satisfied that there was sufficient cause for not filing the appeal 
within that period. 

(4)  If  the  High  Court  is  satisfied  that  a  substantial  question  of  law  is  involved  in  any  case,  it  shall 

formulate that question. 

(5) The  appeal  shall  be  heard  only  on  the  question  so  formulated, and the respondents  shall,  at the 

hearing of the appeal, be allowed to argue that the case does not involve such question. 

(6) Notwithstanding anything in sub-sections (4) and (5), the High Court may exercise its power to 
hear the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case 
involves such question of law. 

(7) The High Court shall decide the question of law so formulated and deliver such judgment thereon 

containing the grounds on which such decision is founded and may award such cost as it deems fit. 

(8) The High Court may determine any issue which — 

(a) has not been determined by the Appellate Tribunal; or 

(b)  has  been  wrongly  determined  by  the  Appellate  Tribunal,  by  reason  of  a  decision  on  the 

question of law referred to in sub-section (1). 

(9) The provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High 

Court shall, so far as may be, apply in the case of appeals under this section. 

(10)  When  the  High  Court  delivers  a  judgment  in  an  appeal  filed  before  it  under  sub-section  (7), 
effect shall be given to the order passed on the appeal by the Assessing Officer on the basis of a certified 
copy of the judgment. 

20. Case before High Court to be heard by not less than two Judges.—(1) An appeal filed before 
the  High  Court  shall  be  heard  by  a  Bench  of  not  less  than  two  Judges  of  the  High  Court  and  shall  be 
decided in accordance with the opinion of such Judges or if the Bench is of more than two Judges, by the 
majority of such Judges. 

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(2) Where there is no such majority, the Judges shall state the point of law upon which they differ and 
the case shall then be heard upon that point only by one or more of the other Judges of the High Court and 
such  point  shall  be  decided  according  to  the  opinion  of the  majority  of  the Judges  who  have  heard the 
case including those who first heard it. 

21. Appeal to Supreme Court.—An appeal shall lie to the Supreme Court from any judgment of the 
High Court delivered under section 19 which the High Court certifies to be a fit case for appeal to the 
Supreme Court. 

22.  Hearing  before  Supreme  Court.—(1)  The  provisions  of  the  Code  of  Civil  Procedure,  1908  
(5 of 1908), relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals 
under section 21 as they apply in the case of appeals from decrees of a High Court. 

(2) The costs of the appeal shall be in the discretion of the Supreme Court. 

(3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to 

the order of the Supreme Court in the manner provided in sub-section (10) of section 19. 

23.  Revision  of  orders  prejudicial  to  revenue.—(1)  The  Principal  Commissioner  or  the 
Commissioner may, for the purposes of revising any order passed in any proceeding under this Act before 
any tax authority subordinate to him, call for and examine all available records relating thereto. 

(2) The Principal Commissioner or the Commissioner may, after giving the assessee an opportunity of 
being heard, pass an order (hereinafter referred to as the revision order) as the circumstances of the case 
justify, if he is satisfied that the order sought to be revised is erroneous in so far as it is prejudicial to the 
interests of the revenue. 

(3) The Principal Commissioner or the Commissioner may make, or cause to be made, such inquiry 

as he considers necessary for the purposes of passing an order under sub-section (2). 

(4)  The  revision  order  passed  by  the  Principal  Commissioner  or  the  Commissioner  under  
sub-section (2) may have the effect of enhancing or modifying the assessment but shall not be an order 
cancelling the assessment and directing a fresh assessment. 

(5) The power of the Principal Commissioner or the Commissioner under sub-section (2) for revising 

an order shall extend to such matters as have not been considered and decided in any appeal. 

(6) No order under sub-section (2) shall be made after the expiry of a period of two years from the 

end of the financial year in which the order sought to be revised was passed. 

(7) Notwithstanding anything in sub-section (6), an order in revision under this section may be passed 
at  any  time  in  respect  of  an  order  which  has  been  passed  in  consequence  of,  or  to  give  effect  to,  any 
finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. 

(8) In computing the period of limitation under sub-section (6), the following shall not be included, 

namely:— 

(a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or 

(b) any period during which any proceeding under this section is stayed by an order or injunction 

of any court. 

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(9) Without prejudice to the generality of the foregoing provisions, an order passed by a tax authority 
shall  be  deemed  to  be  erroneous  in  so  far  as  it  is  prejudicial  to  the  interests  of  the  revenue,  if  in  the 
opinion of the Principal Commissioner or the Commissioner— 

(a) the order is passed without making inquiries or verification which, should have been made; or 

(b) the order has not been made in accordance with any order, direction or instruction issued by 

the Board; or 

(c)  the  order  has  not  been  passed  in  accordance  with  any  decision,  prejudicial  to  the  assessee, 
rendered  by  the  jurisdictional  High  Court  or  the  Supreme  Court  in  the  case  of  the  assessee  or  any 
other person under this Act or the Income-tax Act. 

(10)  In  this  section,  ―record‖  shall  include  all  records  relating  to  any  proceeding  under  this  Act 

available at the time of examination by the Principal Commissioner or the Commissioner. 

24.  Revision  of  other  orders.—(1)  The  Principal  Commissioner  or  the  Commissioner  may,  either 
suo motu or on an application made by the assessee, for the purposes of revising any order passed by an 
authority  subordinate  to  him,  other  than  an  order  to  which  section  23  applies,  call  for  and  examine  all 
available records relating thereto. 

(2) The Principal Commissioner or the Commissioner may pass an order, as he considers necessary, 

which is not prejudicial to the assessee. 

(3) The power of the Principal Commissioner or the Commissioner under sub-section (2) to revise an 

order shall not extend to such order— 

(a)  against  which  an  appeal  has  not  been  filed  but  the  time  for  filing  an  appeal  before  the 

Commissioner (Appeals) has not expired; 

(b) against which an appeal is pending before the Commissioner (Appeals); or 

(c) which has been considered and decided in any appeal. 

(4) The  assessee  shall  make  the application  for revision  of  any  order referred  to  in  sub-section  (1), 
within a period of one year from the date on which the order sought to be revised was communicated to 
him, or the date on which he otherwise came to know of it, whichever is earlier. 

(5)  The  Principal  Commissioner  or  the  Commissioner  may,  if  he  is  satisfied  that  the  assessee  was 
prevented  by  sufficient  cause  from  making  the  application  within  the  period  of  one  year,  admit  an 
application made after the expiry of one year but before expiry of two years from the date referred to in 
sub-section (4). 

(6) Every application by an assessee for revision under this section shall be accompanied by such fees 

as may be prescribed. 

(7) No order under sub-section (2) shall be made after the expiry of— 

(a) a period of one year from the end of the financial year in which an application is made by the 

assessee under sub-section (4); or 

 (b) a period of one year from the date of the order sought to be revised, if the order is revised  

suo motu by the Commissioner. 

(8) In computing the period of limitation under sub-section (7), the following shall not be included, 

namely:— 

(a) the time taken in giving an opportunity to the assessee to be reheard under section 7; or 

14 

 
 
(b) any period during which any proceeding under this section is stayed by an order or injunction 

of any court. 

(9) An order by the Principal Commissioner or the Commissioner declining to interfere shall, for the 

purposes of this section, be deemed not to be an order prejudicial to the assessee. 

25. Tax to be paid pending appeal.—Notwithstanding any appeal preferred to the High Court or the 

Supreme Court, the tax shall be paid in accordance with the assessment made under this Act. 

26. Execution of order for costs awarded by Supreme Court.—The High Court may, on petition 
made for the execution of the order in respect of the costs awarded by the Supreme Court, transmit such 
order for execution to any court subordinate to it. 

27.  Amendment  of  assessment  on  appeal.—Where  as  a  result  of  an  appeal  under  section  15  or 
section 18, any change is made in the assessment of a body of individuals or an association of persons or 
an  order  for  new  assessment  of  a  body  of  individuals  or  an  association  of  persons  is  made,  the 
Commissioner (Appeals) or the Appellate Tribunal, as the case may be, shall pass an order authorising the 
Assessing Officer either to amend the assessment made or make a fresh assessment on any member of the 
body or association. 

28. Exclusion of time taken for obtaining copy.—In computing the period of limitation prescribed 
for  an  appeal  under  this  Act,  the  day  on  which  the  notice  of  the  order  was  served  upon  the  assessee 
without serving a copy of the order, the time taken for obtaining a copy of such order, shall be excluded. 

29.  Filing  of  appeal  by  tax  authority.—(1)  The  Board  may,  from  time  to  time,  issue  orders, 
instructions or directions to other tax authorities, fixing such monetary limits as it may deem fit, for the 
purpose of regulating the filing of appeal by any tax authority under this Chapter. 

(2) Where,  in  pursuance  of  the  orders,  instructions  or  directions  issued  under  sub-section  (1),  a  tax 
authority has not filed any appeal on any issue in the case of an assessee for any financial year, it shall not 
preclude such authority from filing an appeal on the same issue in the case of— 

(a) the same assessee for any other financial year; or 

(b) any other assessee for the same or any other financial year. 

(3)  Notwithstanding  that  no  appeal  has  been  filed  by  a  tax  authority  pursuant  to  the  orders  or 
instructions or directions issued under sub-section (1), it shall not be lawful for an assessee, being a party 
in any appeal, to contend that the tax authority has acquiesced in the decision on the disputed issue by not 
filing an appeal in any case. 

(4)  The  Appellate  Tribunal,  hearing  such  appeal,  shall  have  regard  to  the  orders,  instructions  or 
directions issued under sub-section (1) and the circumstances under which such appeal was filed or not 
filed in respect of any case. 

(5) Every order, instruction or direction which has been issued by the Board fixing monetary limits 
for  filing  an  appeal  shall  be  deemed  to  have  been  issued  under  sub-section  (1)  and  the  provisions  of  
sub-sections (2), (3) and (4) shall apply accordingly. 

30. Recovery of tax dues by Assessing Officer.—(1) Any amount specified as payable in a notice of 
demand under section 13 shall be paid within a period of thirty days of the service of the notice, to the 
credit of the Central Government in such manner as may be prescribed. 

(2) Where the Assessing Officer has any reason to believe that it will be detrimental to the interests of 
revenue, if the period of thirty days referred to in sub-section (1) is allowed, he may, with the previous 
approval of the Joint Commissioner, reduce such period as he deems fit. 

15 

 
 
(3) The Assessing Officer may, on an application made by the assessee, before the expiry of a period 
of  thirty  days  or  the  period  reduced  under  sub-section  (2)  or  during  the  pendency  of  appeal  with  the 
Commissioner (Appeals), extend the time for payment, or allow payment by instalments, subject to such 
conditions as he may think fit to impose in the circumstances of the case. 

(4) An assessee shall be deemed to be an assessee in default, if the tax arrear is not paid within the 
time  allowed  under  sub-section  (1)  or  the  period  reduced  under  sub-section  (2)  or  extended  under  
sub-section (3), as the case may be. 

(5)  Where  an  assessee  defaults  in  paying  any  one  of  the  instalments  within  the  time  fixed  under  
sub-section  (3),  he  shall  be  deemed  to  be  an  assessee  in  default  in  respect  of  the  whole  of  the  then 
outstanding amount. 

(6) The Assessing Officer may, in a case where no certificate has been drawn up under section 31 by 
the Tax Recovery Officer, recover the amount in respect of which the assessee is in default, or is deemed 
to be in default, by any one or more of the modes provided in section 32. 

(7) The Tax Recovery Officer shall be vested with the powers to recover the tax arrear on drawing up 

of a statement of tax arrear under section 31. 

31. Recovery of tax dues by Tax Recovery Officer.—(1) The Tax Recovery Officer may draw up 
under  his  signature  a  statement  of  tax  arrears  of  an  assessee  referred  to  in  sub-section  (4)  or  
sub-section (5) of section 30, in such form, as may be prescribed (such statement hereafter in this Chapter 
referred to as ―certificate‖). 

(2)  The  certificate  under  sub-section  (1)  shall  stand  amended  from  time  to  time  consequent  to  any 

proceeding under this Act and the Tax Recovery Officer shall recover the amount so modified. 

(3) The Tax Recovery Officer may rectify any mistake apparent from the record. 

(4) The Tax Recovery Officer shall have the power to extend the time for payment, or allow payment 

by instalments, subject to such conditions as he may think fit to impose in the circumstances of the case. 

(5) The Tax Recovery Officer shall proceed to recover from the assessee the amount specified in the 
certificate  by  one  or  more  of  the  modes  referred  to  in  section  32  or  in  the  Second  Schedule  to  the  
Income-tax Act. 

(6) It shall not be open to the assessee to dispute the correctness of any certificate drawn up by the 
Tax Recovery Officer on any ground whatsoever, but it shall be lawful for the Tax Recovery Officer to 
cancel the certificate if, for any reason, he thinks it necessary so to do. 

32. Modes of recovery of tax dues.—(1) The Assessing Officer or the Tax Recovery Officer may 
require  the  employer  of  the  assessee  to  deduct  from  any  payment  to  the  assessee  such  amount  as  is 
sufficient to meet the tax arrear from the assessee. 

(2) Upon requisition under sub-section (1), the employer shall comply with the requisition and shall 

pay the sum so deducted to the credit of the Central Government in such manner as may be prescribed. 

 (3) Any part of the salary, exempt from  attachment in execution of a decree of a civil court under 
section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall be exempt from any requisition made 
under sub-section (1). 

(4) The Assessing Officer or the Tax Recovery Officer may, by notice in writing, require any debtor 
of  the  assessee  to  pay  such  amount,  not  exceeding  the  amount  of  debt,  as  is  sufficient  to  meet  the  tax 
arrear of the assessee. 

16 

 
 
(5) Upon receipt of the notice under sub-section (4), the debtor shall comply with the requisition and 
shall pay the sum to the credit of the Central Government in such manner as may be prescribed within the 
time (not being before the debt becomes due to the assessee) specified in the notice. 

(6)  A  copy  of  the  notice  issued  under  sub-section (4)  shall  be  forwarded to  the  assessee  at  his  last 
address known to the Assessing Officer or the Tax Recovery Officer and in the case of a joint account, to 
all the joint holders at their last addresses known to the Assessing Officer or the Tax Recovery Officer. 

(7) It shall not be necessary for any pass book, deposit receipt, policy or any other document to be 
produced  for  the  purpose  of  any  entry,  endorsement  or  the  like  being  made  before  payment  is  made, 
notwithstanding  any  rule,  practice  or  requirement  to  the  contrary  if  the  notice  under  sub-section  (4)  is 
issued to a post office, banking company, insurer or any other person. 

(8) Any claim in respect of any property, in relation to which a notice under sub-section (4) has been 

issued, arising after the date of the notice, shall be void as against any demand contained in the notice. 

(9) A person to whom a notice under sub-section (4) has been issued, shall not be required to pay the 
amount of tax arrear specified therein, or part thereof, if he objects to it by a statement on oath that the 
sum demanded, or any part thereof, is not due to the assesse or that he does not hold any money for, or on 
account of, the assessee. 

(10) The person referred to in sub-section (9) shall be personally liable to the Assessing Officer or the 
Tax Recovery Officer, as the case may be, to the extent of his own liability to the assessee on the date of 
the notice, or to the extent of the liability of the assessee for any sum due under this Act, whichever is 
less, if it is discovered that the statement made by him was false in any respect. 

(11)  The  Assessing  Officer  or  the  Tax  Recovery  Officer  may  amend  or  revoke  any  notice  issued 

under sub-section (4) or extend the time for making any payment in pursuance of such notice. 

(12) The Assessing Officer or the Tax Recovery Officer shall grant a receipt for any amount paid in 
compliance with a notice issued under sub-section (4), and the person so paying shall be fully discharged 
from his liability to the assessee to the extent of the amount so paid. 

(13) Any person discharging any liability to the assessee after receipt of a notice under sub-section (4) 
shall be personally liable to the Assessing Officer or the Tax Recovery Officer to the extent of his own 
liability to the assessee so discharged or to the extent of the liability of the assessee for any sum due under 
this Act, whichever is less. 

(14) The debtor to whom a notice under sub-section (4) is sent shall be deemed to be an assessee in 
default,  if  he  fails  to  make  such  payment  and  further  proceedings  may  be  initiated  against  him  for  the 
realisation  of  the  amount  in  the  manner  provided  in  this  section  and  the  Second  Schedule  to  the  
Income-tax Act. 

(15) The  Assessing  Officer  or  the Tax  Recovery  Officer  may  apply  to  the  court,  in  whose  custody 
there is money belonging to the assessee, for payment to him of the entire amount of such money or if it 
is more than the tax arrear, an amount sufficient to meet the tax arrear. 

(16) The Assessing Officer or the Tax Recovery Officer shall effect the recovery of any tax arrear in 
the same manner as attachment, distraint and sale of any movable property under the Second Schedule to 
the  Income-tax  Act,  if  he  is  so  authorised  by  the  Principal  Chief  Commissioner  or  the  Chief 
Commissioner, or the Principal Commissioner or the Commissioner, by general or special order. 

17 

 
 
 
(17) In this section,— 

(a) ‗‗debtor‘‘, in relation to an assessee, means,— 

(i) any person from whom any money is due, or may become due, to the assessee; or 

(ii) any  person who holds, or may subsequently hold, any money for, or on account of, the 

assessee; or 

(iii) any person who holds, or may subsequently hold, any money for, or on account of, the 

assessee jointly with any other person; 

(b) shares of the joint holders in the account shall be presumed, until the contrary is proved, to be 

equal. 

33. Tax Recovery Officer by whom recovery of tax dues is to be effected.—(1) The Tax Recovery 

Officer competent to take action under section 31 shall be the Tax Recovery Officer — 

(a) within whose jurisdiction — 

(i) the assessee carries on his business; 

(ii) the principal place of business of the assessee is situate; 

(iii) the assessee resides; or 

(iv) any movable or immovable property of the assessee is situate; or 

(b) who has been assigned jurisdiction under section 6. 

(2) The Tax Recovery Officer, referred to in sub-section (1), may send a certificate, in such manner as 
may  be  prescribed,  specifying  the  tax  arrear  to  be  recovered,  to  another  Tax  Recovery  Officer  within 
whose jurisdiction the assessee resides or has property, if the first-mentioned Tax Recovery Officer — 

(a) is not able to recover the entire amount by sale of the property, movable or immovable, within 

his jurisdiction; or 

(b) is of the opinion that, for the purpose of expediting, or securing, the recovery of the whole, or 

any part, of the amount under this Chapter, it is necessary to send such certificate. 

(3)  The  second-mentioned  Tax  Recovery  Officer  shall,  on  receipt  of  the  certificate,  assume 
jurisdiction for recovery of the amount of tax arrear specified therein and proceed to recover the amount 
in accordance with the provisions of this Chapter. 

34. Recovery of tax dues in case of a company in liquidation.—(1) The liquidator shall inform the 
Assessing  Officer,  who  has  jurisdiction  to  assess  the  undisclosed  foreign  income  and  asset  of  the 
company, of his appointment within a period of thirty days of his becoming the liquidator. 

(2) The Assessing Officer shall, within a period of three months from the date on which he receives 
the  information,  intimate  to  the  liquidator  the  amount  which,  in  his  opinion,  would  be  sufficient  to 
provide for any tax arrears or any amount which is likely to become payable thereafter, by the company 
under this Act. 

(3) The liquidator— 

(a) shall not part with any of the assets of the company, or the properties, in his custody until he 

has been intimated by the Assessing Officer under sub-section (2); and 

(b) on being so intimated, shall set aside an amount equal to the amount intimated. 

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(4) Upon receipt of the intimation from the Assessing Officer under sub-section (2), the amount so 
intimated shall, notwithstanding anything in any other law for the time being in force, be the first charge 
on the assets of the company remaining after payment of the following dues, namely:— 

(a) workmen‘s dues; and 

(b)  debts  due  to  secured  creditors  to  the  extent  such  debts  under  clause  (iii)  of  the  proviso  to  
sub-section  (1)  of  section  325  of  the  Companies  Act,  2013  (18  of  2013)  are  pari  passu  with  such 
dues. 

(5) The liquidator shall be personally liable for the payment of the amount payable by the company, if 

he— 

(a) fails to inform in accordance with sub-section (1); or 

(b) fails to set aside the amount as required by sub-section (3). 

(6) The obligations and liabilities attached to the liquidator under this section shall attach to all the 

liquidators jointly and severally in a case where there is more than one liquidator. 

(7) The provisions of this section shall prevail over anything to the contrary contained in any other 

law for the time being in force. 

(8) In this section,— 

(a) ―liquidator‖ in relation to a company which is being wound up, whether under the orders of a 

court or otherwise, shall include a receiver of the assets of the company; 

(b)  ―workmen‘s  dues‖  shall  have  the  meaning  assigned  to  it  in  section  325  of  the  Companies  

Act, 2013 (18 of 2013). 

35. Liability of manager of a company.—(1) Every person being a manager at any time during the 
financial year shall be jointly and severally liable for the payment of any amount due under this Act in 
respect of the company for the financial year, if the amount cannot be recovered from the company. 

(2) The provisions of sub-section (1) shall not apply, if the manager proves that non-recovery cannot 
be  attributed  to  any  neglect,  misfeasance  or  breach  of  duty  on  his  part  in  relation  to  the  affairs  of  the 
company. 

(3)  The  provisions  of  this  section  shall  prevail  over  anything  to  the  contrary  contained  in  the 

Companies Act, 2013 (18 of 2013). 

(4)  In  this  section,  ―manager‖  shall  include  a  managing  director  and  both  shall  have  the  meaning 
respectively  assigned  to  them  in  clause  (53)  and  clause  (54)  of  section  2  of  the  Companies  Act,  2013  
(18 of 2013). 

36.  Joint  and  several  liability  of  participants.—(1)  Every  person,  being  a  participant  in  an 
unincorporated body at any time during the financial year, or the representative assessee of the deceased 
participant, shall be jointly and severally liable, along with the unincorporated body, for payment of any 
amount payable by the unincorporated body under this Act and all the provisions of this Act shall apply 
accordingly. 

(2) In case of a limited liability partnership, the provisions of  sub-section (1) shall not apply, if the 
partner proves that non-recovery cannot be attributed to any neglect, misfeasance or breach of duty on his 
part in relation to the affairs of the partnership. 

(3) The provisions of this section shall prevail over anything to the contrary contained in the Limited 

Liability Partnership Act, 2008 (6 of 2009). 

19 

 
37. Recovery through State Government.—If the recovery of tax in any area has been entrusted to 
a State Government under clause (1) of article 258 of the Constitution, the State Government may direct, 
with respect to that area or any part thereof, that tax shall be recovered therein with, and as an addition to, 
any municipal tax or local rate, by the same person and in the manner as the municipal tax or local rate is 
recovered. 

38.  Recovery  of  tax  dues  in  pursuance  of  agreements  with  foreign  countries  or  specified 
territory.—(1) The Tax Recovery Officer may, in a case where an assessee has property in a country or a 
specified territory outside India, forward a certificate to the Board for recovery of the tax arrears from the 
assessee,  where  the  Central  Government  or  any  specified  association  in  India  has  entered  into  an 
agreement with that country or territory under section 90 or section 90A of the Income-tax Act or under 
sub-sections (1), (2) or sub-section (4) of section 73 of this Act, as the case may be, for the purposes of 
recovery of tax. 

(2) On receipt of the certificate under sub-section (3) from the Tax Recovery Officer, the Board may 
take  such  action  thereon  as  it  may  deem  appropriate  having  regard  to  the  terms  of  the  agreement  with 
such country or a specified territory. 

39.  Recovery  by  suit  or  under  other  law  not  affected.—(1)  The  several  modes  of  recovery 

specified in this Chapter shall not affect in any way— 

(a)  any  other  law  for  the  time  being  in  force  relating  to  the  recovery  of  debts  due  to  the 

Government; or 

(b)  the  right  of  the  Government  to  institute  a  suit  for  the  recovery  of  the  tax  arrears  from  the 

assessee. 

(2) It shall be lawful for the Assessing Officer, or the Government, to have recourse to any such law 
or suit, notwithstanding that the tax arrears are being recovered from the assessee by any mode specified 
in this Chapter. 

40.  Interest  for  default  in  furnishing  return  and  payment  or  deferment  of  advance  tax.—(1) 
Where the assessee has any income from a source outside India which has not been disclosed in the return 
of income furnished under sub-section (1) of section 139 of the Income-tax Act or the return of income 
has  not  been  furnished  under  the  said  sub-section,  interest  shall  be  chargeable  in  accordance  with  the 
provisions of section 234A of the Income-tax Act. 

(2) Where the assessee has any undisclosed income from a source outside India and the advance tax 
on  such  income  has  not  been  paid  in  accordance  with  Part  C  of  Chapter  XVII  of  the  Income-tax  Act, 
interest  shall  be  chargeable  in  accordance  with  the  provisions  of  sections  234B  and  234C  of  the  
Income-tax Act. 

CHAPTER IV 

PENALTIES 

41.  Penalty  in  relation  to  undisclosed  foreign  income  and  asset.—The  Assessing  Officer  may 
direct  that  in  a  case  where  tax  has  been  computed  under  section  10  in  respect  of  undisclosed  foreign 
income and asset, the assessee shall pay by way of penalty, in addition to tax, if any, payable by him, a 
sum equal to three times the tax computed under that section. 

42.  Penalty  for  failure  to  furnish  return  in  relation  to  foreign  income  and  asset.—If  a  person, 
being a resident other than not ordinarily resident in India within the meaning of clause (6) of section 6 of 
the Income-tax Act, who is required to furnish a return of his income for any previous year, as required 

20 

 
under sub-section (1) of section 139 of the Income-tax Act or by the provisos to that sub-section, and who 
at any time during such previous year,— 

(i) held any asset (including financial interest in any entity) located outside India as a beneficial 

owner or otherwise; or 

(ii) was a beneficiary of any asset (including financial interest in any entity) located outside India; 

or 

(iii) had any income from a source located outside India, 

and fails to furnish such return before the end of the relevant assessment year, the Assessing Officer may 
direct that such person shall pay, by way of penalty, a sum of ten lakh rupees: 

Provided  that  this  section  shall  not  apply  in  respect  of  an  asset,  being  one  or  more  bank  accounts 
having an aggregate balance which does not exceed a value equivalent to five hundred thousand rupees at 
any time during the previous year. 

Explanation.—For  determining  the  value  equivalent  in  rupees  of  the  balance  in  an  account 
maintained  in foreign  currency,  the  rate  of  exchange  for  calculation  of the  value  in  rupees shall  be  the 
telegraphic transfer buying rate of such currency as on the date for which the value is to be determined as 
adopted by the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955). 

43.  Penalty  for  failure  to  furnish  in  return  of  income,  an  information  or  furnish  inaccurate 
particulars about an asset (including financial interest in any entity) located outside India.—If any 
person,  being  a  resident  other  than  not  ordinarily  resident  in  India  within  the  meaning  of  clause  (6)  of 
section  6  of  the  Income-tax  Act,  who  has  furnished  the  return  of  income  for  any  previous  year  under  
sub-section  (1)  or  sub-section (4)  or  sub-section (5) of  section  139 of the  said Act, fails  to  furnish  any 
information  or  furnishes  inaccurate  particulars  in  such  return  relating  to  any  asset  (including  financial 
interest in any entity) located outside India, held by him as a beneficial owner or otherwise, or in respect 
of which he was a beneficiary, or relating to any income from a source located outside India, at any time 
during such previous year, the Assessing Officer may direct that such person shall pay, by way of penalty, 
a sum of ten lakh rupees: 

Provided  that  this  section  shall  not  apply  in  respect  of  an  asset,  being  one  or  more  bank  accounts 
having an aggregate balance which does not exceed a value equivalent to five hundred thousand rupees at 
any time during the previous year. 

Explanation.—The  value  equivalent  in  rupees  shall  be  determined  in  the  manner  provided  in  the 

Explanation to section 42. 

44. Penalty for default in payment of tax arrear.—(1) Every person who is an assessee in default, 
or  an  assessee  deemed  to  be  in  default,  as  the  case  may  be,  in  making  payment  of  tax,  and  in  case  of 
continuing default by such assessee, he shall be liable to a penalty of an amount, equal to the amount of 
tax arrear. 

(2) An assessee shall not cease to be liable to any penalty under sub-section (1) merely by reason of 

the fact that before the levy of such penalty he has paid the tax. 

45.  Penalty  for  other  defaults.—(1)  A  person  shall  be  liable  to  a  penalty  if  he  has,  without 

reasonable cause, failed to— 

(a) answer any question put to him by a tax authority in the exercise of its powers under this Act; 

(b) sign any statement made by him in the course of any proceedings under this Act which a tax 

authority may legally require him to sign; 

21 

 
 
(c)  attend  or  produce  books  of  account  or  documents  at  the  place  or  time,  if  he  is  required  to 
attend or to give evidence or produce books of account or other documents, at certain place and time 
in response to summons issued under section 8. 

(2) The penalty referred to in sub-section (1) shall be a sum which shall not be less than fifty thousand 

rupees but which may extend to two lakh rupees. 

46.  Procedure.—(1)  The  tax  authority  shall,  for  the  purposes  of  imposing  any  penalty  under  this 
Chapter, issue a notice to an assessee requiring him to show cause why the penalty should not be imposed 
on him. 

(2) The notice referred to in sub-section (1) shall be issued— 

(a)  during  the  pendency  of  any  proceedings  under  this  Act  for  the  relevant  previous  year,  in 

respect of penalty referred to in section 41; 

(b)  within  a  period  of  three  years  from  the  end  of  the  financial  year  in  which  the  default  is 

committed, in respect of penalties referred to in section 45. 

(3) No order imposing a penalty under this Chapter shall be made unless the assessee has been given 

an opportunity of being heard. 

(4)  An  order  imposing  a  penalty  under  this  Chapter  shall  be  made  with  the  approval  of  the  Joint 

Commissioner,1[or the Joint Diretor] if— 

(a) the penalty exceeds one lakh rupees and the tax authority levying the penalty is in the rank of 

Income-tax Officer; or 

(b) the penalty exceeds five lakh rupees and the tax authority levying the penalty is in the rank of 

Assistant Commissioner or Deputy Commissioner 1[or Assistant Director or Deputy Director]. 

(5) Every order of penalty issued under this Chapter shall be accompanied by a notice of demand in 
respect of the amount of penalty imposed and such notice of demand shall be deemed to be a notice under 
section 13. 

47. Bar  of  limitation for imposing  penalty.—(1)  No  order  imposing  a  penalty  under this  Chapter 
shall be passed after the expiry of a period of one year from the end of the financial year in which the 
notice for imposition of penalty is issued under section 46. 

(2) An order imposing, or dropping the proceedings for imposition of, penalty under this Chapter may 
be revised, or revived, as the case may be, on the basis of assessment of the undisclosed foreign income 
and  asset  as  revised  after  giving  effect  to  the  order  of  the  Commissioner  (Appeals),  the  Appellate 
Tribunal, the High Court or the Supreme Court or order of revision under section 23 or section 24. 

(3) An order revising or reviving the penalty under sub-section (2) shall not be passed after the expiry 
of a period of six months from the end of the month in which order of the Commissioner (Appeals), the 
Appellate  Tribunal,  the  High  Court  or  the  Supreme  Court  is  received  by  the  Principal  Chief 
Commissioner  or  the  Chief  Commissioner  or  the  Principal  Commissioner  or  the  Commissioner  or  the 
order of revision under section 23 or section 24 is passed. 

(4) In computing the period of limitation for the purposes of this section, the following time or period 

shall not be included— 

 (a) the time taken in giving an opportunity to the assessee to be reheard under section 7; and 

1. Ins. by Act 13 of 2018, s. 219 (w.e.f. 1-4-2018). 

22 

 
                                                           
(b) any period during which a proceeding under this Chapter for the levy of penalty is stayed by 

an order, or injunction, of any court. 

CHAPTER V 

OFFENCES AND PROSECUTIONS 

48.  Chapter  not  in  derogation  of  any  other  law  or  any  other  provision  of  this  Act.—(1)  The 
provisions of this Chapter shall be in addition to, and not in derogation of, the provisions of any other law 
providing for prosecution for offences thereunder. 

(2) The provisions of this Chapter shall be independent of any order under this Act that may be made, 
or  has  not  been  made,  on  any  person  and  it  shall  be  no  defence  that  the  order  has  not  been  made  on 
account of time limitation or for any other reason. 

49.  Punishment  for  failure  to  furnish  return  in  relation  to  foreign  income  and  asset.—If  a 
person,  being  a  resident  other  than  not  ordinarily  resident  in  India  within  the  meaning  of  clause  (6)  of 
section  6  of  the  Income-tax  Act,  who  at  any  time  during  the  previous  year,  held  any  asset  (including 
financial  interest  in  any  entity)  located  outside  India  as  a  beneficial  owner  or  otherwise,  or  was  a 
beneficiary of such asset or had income from a source outside India and wilfully fails to furnish in due 
time the return of income which he is required to furnish under sub-section (1) of section 139 of that Act, 
he shall be punishable with rigorous imprisonment for a term which shall not be less than six months but 
which may extend to seven years and with fine: 

Provided that a person shall not be proceeded against under this section for failure to furnish in due 
time  the  return  of  income  under  sub-section  (1)  of  section  139  of  the  Income-tax  Act  if  the  return  is 
furnished by him before the expiry of the assessment year. 

50.  Punishment  for  failure  to  furnish  in  return  of  income,  any  information  about  an  asset 
(including financial interest in any entity) located outside India.—If any person, being a resident other 
than not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, 
who has furnished the return of income for any previous year under sub-section (1) or sub-section (4) or 
sub-section (5) of section 139 of that Act, wilfully fails to furnish in such return any information relating 
to an asset (including financial interest in any entity) located outside India, held by him, as a beneficial 
owner or otherwise or in which he was a beneficiary, at any time during such previous year, or disclose 
any  income  from  a  source  outside  India,  he  shall  be punishable  with  rigorous imprisonment  for a  term 
which shall not be less than six months but which may extend to seven years and with fine. 

51. Punishment for wilful attempt to evade tax.—(1) If a person, being a resident other than not 
ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, wilfully 
attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under 
this Act, he shall be punishable with rigorous imprisonment for a term which shall not be less than three 
years but which may extend to ten years and with fine. 

(2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty 
or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under 
any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be 
less than three months but which may extend to three years and shall, in the discretion of the court, also 
be liable to fine. 

(3) For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable 

or imposable under this Act or the payment thereof shall include a case where any person— 

23 

 
(i)  has  in  his  possession  or  control  any  books  of  account  or  other  documents  (being  books  of 
account  or  other  documents  relevant  to  any  proceeding  under  this  Act)  containing  a  false  entry  or 
statement; or 

 (ii) makes or causes to be made any false entry or statement in such books of account or other 

documents; or 

(iii)  wilfully  omits  or  causes  to  be  omitted  any  relevant  entry  or  statement  in  such  books  of 

account or other documents; or 

(iv) causes any other circumstance to exist which will have the effect of enabling such person to 

evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof. 

52.  Punishment  for  false  statement  in  verification.—If  a  person,  makes  a  statement  in  any 
verification under this Act or under any rule made thereunder, or delivers an account or statement which 
is  false,  and  which  he  either  knows  or  believes  to  be  false,  or  does  not  believe  to  be  true,  he  shall  be 
punishable with rigorous imprisonment for a term which shall not be less than six months but which may 
extend to seven years and with fine. 

53. Punishment for abetment.—If a person abets or induces in any manner another person to make 
and deliver an account or a statement or declaration relating to tax payable under this Act which is false 
and  which  he  either  knows  to  be  false  or  does  not  believe  to  be  true  or  to  commit  an  offence  under  
sub-section (1) of section 51, he shall be punishable with rigorous imprisonment for a term which shall 
not be less than six months but which may extend to seven years and with fine. 

54. Presumption as to culpable mental state.—(1) In any prosecution for any offence under this Act 
which requires a culpable mental state on the part of the accused, the court shall presume the existence of 
such mental state but it shall be a defence for  the accused to prove the fact that he had no such mental 
state with respect to the act charged as an offence in that prosecution. 

Explanation.—In this sub-section, ―culpable mental state‖ includes intention, motive or knowledge of 

a fact or belief in, or reason to believe, a fact. 

(2) For the purposes of this section, a fact is said to be proved only when the court believes it to exist 
beyond  reasonable  doubt  and  not  merely  when  its  existence  is  established  by  a  preponderance  of 
probability. 

55.  1[Prosecution  to  be  at  instance  of  Principal  Chief  Commissioner  or  Principal  Director 
General  or  Chief  Commissioner  or  Director  General  or  Principal  Commissioner  or 
Commissioner].—(1) A person shall not be proceeded against for an offence under section 49 to section 
53  (both  inclusive)  except  with  the  sanction  of  the  Principal  Commissioner  or  Commissioner  or  the 
Commissioner (Appeals), as the case may be. 

(2) The Principal Chief Commissioner or the Chief Commissioner 2[or the Principal Director General 
or the Director General] may issue such instructions, or directions, to the tax authorities referred to in sub-
section (1) as he may think fit for the institution of proceedings under this section. 

(3) The power of the Board to issue orders, instructions or directions under this Act shall include the 
power to issue orders, instructions or directions (including instructions or directions to obtain its previous 
approval)  to  other  tax  authorities  for  the  proper  initiation  of  proceedings  of  offences  (including  an 
authorisation to file and pursue complaints by one or more Inspectors of tax) under this section. 

1. Subs. by Act 13 of 2018, s. 219, for marginal heading (w.e.f. 1-4-2018). 
2. Ins. by s. 219, ibid. (w.e.f. 1-4-2018). 

24 

 
                                                           
56.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company,  every  person  who,  at  the  time  the  offence  was  committed,  was  in  charge  of,  and  was 
responsible to, the company for the conduct of the business of the company as well as the company shall 
be  deemed  to  be  guilty  of  the  offence  and  shall  be  liable  to  be  proceeded  against  and  punished 
accordingly. 

(2) Nothing in sub-section (1) shall render any such person liable to any punishment if he proves that 
the offence was committed without his knowledge or that he had exercised all due diligence to prevent the 
commission of such offence. 

(3) Notwithstanding anything in sub-section (1), where an offence under this Act has been committed 
by a company and it is proved that the offence has been committed with the consent or connivance of, or 
is  attributable  to  any  neglect  on  the  part  of,  any  director,  manager,  secretary  or  other  officer  of  the 
company,  such  director,  manager,  secretary  or  other  officer  shall  also  be  deemed  to  be  guilty  of  that 
offence and shall be liable to be proceeded against and punished accordingly. 

(4)  Where  an  offence  under  this  Act  has  been  committed  by  a  person,  being  a  company,  and  the 
punishment  for  such  offence  is  imprisonment  and  fine,  then,  without  prejudice  to  sub-section  (1)  or  
sub-section (3), such company shall be punished with fine and every person, referred to in sub-section (1), 
or the director, manager, secretary or other officer of the company referred to in sub-section (3), shall be 
liable to be proceeded against and punished in accordance with the provisions of this Act. 

(5) In this section— 

(a) ―company‖ means a body corporate, and includes — 

(i) an unincorporated body; 

(ii) a Hindu undivided family; 

(b) ―director‖, in relation to — 

(i) an unincorporated body, means a participant in the body; 

(ii) a Hindu undivided family, means an adult member of the family; and 

(iii) a company, means a whole-time director, or where there is no such director, any other 

director or manager or officer, who is in charge of the affairs of the company. 

57. Proof of entries in records or documents.—(1) The entries in the records, or other documents, 
in the custody of a tax authority shall be admitted in evidence in any proceeding for the prosecution of 
any person for an offence under this Chapter. 

(2) The entries referred to in sub-section (1) may be proved by the production of— 

(a) the records or other documents (containing such entries) in the custody of the tax authority; or 

(b) a copy of the entries certified by that authority under its signature, as true copy of the original 

entries contained in the records or other documents in its custody. 

58. Punishment for second and subsequent offences.—If any person convicted of an offence under 
section  49  to  section  53  (both  inclusive)  is  again  convicted  of  an  offence  under  any  of  the  aforesaid 
provisions,  he  shall  be  punishable  for  the  second  and  every  subsequent  offence  with  rigorous 
imprisonment for a term which shall not be less than three years, but which may extend to ten years and 
with fine which shall not be less than five lakh rupees, but which may extend to one crore rupees. 

25 

 
CHAPTER VI 

TAX COMPLIANCE FOR UNDISCLOSED FOREIGN INCOME AND ASSETS 

59. Declaration of undisclosed foreign asset.—Subject to the provisions of this Chapter, any person 
may make, on or after the date of commencement of this Act but on or before a date to be notified by the 
Central  Government  in  the  Official  Gazette,  a  declaration  in  respect  of  any  undisclosed  asset  located 
outside India and acquired from income chargeable to tax under the Income-tax Act for any assessment 
year prior to the assessment year beginning on 1st day of April, 2016— 

(a) for which he has failed to furnish a return under section 139 of the Income-tax Act; 

(b) which he has failed to disclose in a return of income furnished by him under the Income-tax 

Act before the date of commencement of this Act; 

 (c) which has escaped assessment by reason of the omission or failure on the part of such person 
to make a return under the Income-tax Act or to disclose fully and truly all material facts necessary 
for the assessment or otherwise. 

60.  Charge  of  tax.—Notwithstanding  anything  contained  in  the  Income-tax  Act  or  in  any  Finance 
Act, the undisclosed asset located outside India and declared under section 59 within the time specified 
therein shall be chargeable to tax at the rate of thirty per cent. of value of such undisclosed asset on the 
date of commencement of this Act. 

61. Penalty.—Notwithstanding anything contained in the Income-tax Act or in any Finance Act, the 
person making a declaration of undisclosed asset located outside India shall, in addition to tax charged 
under section 60, be liable to penalty at the rate of one hundred per cent. of such tax. 

62.  Manner  of  declaration.—(1)  A  declaration  under  section  59  shall  be  made  to  the  Principal 
Commissioner  or  the  Commissioner  and  shall  be  in  such  form  and  shall  be  verified in  such  manner  as 
may be prescribed. 

(2) The declaration shall be signed,— 

(i) where the declarant is an individual, by the individual himself; where such individual is absent 
from India, by the individual concerned or by some person duly authorised by him in this behalf; and 
where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any 
other person competent to act on his behalf; 

(ii) where the declarant is a Hindu undivided family, by the karta, and where the karta is absent 
from  India or is mentally incapacitated from attending to his affairs, by any other adult member of 
such family; 

(iii)  where  the  declarant  is  a  company,  by  the  managing  director  thereof,  or  where  for  any 
unavoidable  reason  such  managing  director  is  not  able  to  sign  the  declaration  or  where  there  is  no 
managing director, by any director thereof; 

(iv) where the declarant is a firm, by the managing partner thereof, or where for any unavoidable 
reason  such  managing  partner  is  not  able  to  sign  the  declaration,  or  where  there  is  no  managing 
partner as such, by any partner thereof, not being a minor; 

(v) where the declarant is any other association, by any member of the association or the principal 

officer thereof; and 

26 

 
 
 
(vi) where the declarant is any other person, by that person or by some other person competent to 

act on his behalf. 

(3)  Any  person,  who  has  made  a  declaration  under  sub-section  (1)  in  respect  of  his  asset  or  as  a 
representative assessee in respect of the asset of any other person, shall not be entitled to make any other 
declaration, under that sub-section in respect of his asset or the asset of such other person, and any such 
other declaration, if made, shall be deemed to be void. 

63.  Time  for  payment  of  tax.—(1)  The  tax  payable  under  section  60  and  penalty  payable  under 
section 61 in respect of the undisclosed asset located outside India, shall be paid on or before a date to be 
notified by the Central Government in the Official Gazette. 

(2)  The  declarant  shall  file  the  proof  of  payment  of  tax  and  penalty  on  or  before  the  date  notified 
under  sub-section  (1),  with  the  Principal  Commissioner  or  the  Commissioner  before  whom  the 
declaration under section 59 was made. 

(3) If the declarant fails to pay the tax in respect of the declaration made under section 59 on or before 
the date notified under sub-section (1), the declaration filed by him shall be deemed never to have been 
made under this Chapter. 

64.  Undisclosed  foreign  asset  declared  not  to  be  included  in  total  income.—The  amount  of 
undisclosed investment in an asset located outside India declared in accordance with section 59 shall not 
be included in the total income of the declarant for any assessment year under the Income-tax Act, if the 
declarant makes the payment of tax referred to in section 60 and the penalty referred to in section 61 by 
the date notified under sub-section (1) of section 63. 

65.  Undisclosed  foreign  asset  declared  not  to  affect  finality  of  completed  assessments.—The 
declarant  shall  not  be  entitled,  in  respect  of  undisclosed  asset  located  outside  India  declared  or  any 
amount of tax paid thereon, to reopen any assessment or reassessment made under the Income-tax Act or 
the  Wealth-tax  Act,  1957  (27  of  1957)  or  claim  any  set  off  or  relief  in  any  appeal,  reference  or  other 
proceeding in relation to any such assessment or reassessment. 

66. Tax in respect of voluntarily disclosed asset not refundable.—Any amount of tax paid under 
section 60 or penalty paid under section 61 in pursuance of a declaration made under section 59 shall not 
be refundable. 

67.  Declaration  not  admissible  in  evidence  against  declarant.—Notwithstanding  anything 
contained in any other law for the time being in force, nothing contained in any declaration made under 
section 59 shall be admissible in evidence against the declarant for the purpose of any proceeding relating 
to  imposition  of  penalty,  other  than  the  penalty  leviable  under  section  61,  or  for  the  purposes  of 
prosecution under the Income-tax Act or the Wealth-tax Act, 1957 (27 of 1957) or the Foreign Exchange 
Management Act, 1999 (42 of 1999) or the Companies Act, 2013 (18 of 2013) or the Customs Act, 1962 
(52 of 1962) . 

68. Declaration by misrepresentation of facts to be void.—Notwithstanding anything contained in 
this  Chapter,  where  a  declaration  has  been  made  by  misrepresentation  or  suppression  of  facts,  such 
declaration shall be void and shall be deemed never to have been made under this Chapter. 

69.  Exemption  from  wealth-tax  in  respect  of  assets  specified  in  declaration.—(1)  Where  the 
undisclosed  asset  located  outside  India  is  represented by  cash (including  bank  deposits), bullion  or  any 
other assets specified in the declaration made under section 59— 

27 

 
(a)  in  respect  of  which  the  declarant  has  failed  to  furnish  a  return  under  section  14  of  the  
Wealth-tax Act, 1957 (27 of 1957) for the assessment year commencing on or before the 1st day of 
April, 2015; or 

(b)  which  have  not  been  shown  in  the  return  of  net  wealth  furnished  by  him  for  the  said 

assessment year or years; or  

(c) which have been understated in value in the return of net wealth furnished by him for the said 

assessment year or years, 

then,  notwithstanding  anything  contained  in  the  Wealth-tax  Act,  1957  (27  of  1957)  or  any  rules  made 
thereunder,— 

(I) wealth-tax shall not be payable by the declarant in respect of the assets referred to in clause (a) or 

clause (b) and such assets shall not be included in his net wealth for the said assessment year or years; 

(II) the amount by which the value of the assets referred to in clause (c) has been understated in the 
return of net wealth for the said assessment year or years, to the extent such amount does not exceed the 
voluntarily  disclosed  income  utilised  for  acquiring  such  assets,  shall  not  be  taken  into  account  in 
computing the net wealth of the declarant for the said assessment year or years. 

Explanation.—Where  a  declaration  under  section  59  is  made  by  a  firm,  the  assets  referred  to  in  
clause (I) or, as the case may be, the amount referred to in clause (II) shall not be taken into account in 
computing the net wealth of any partner of the firm or, as the case may be, in determining the value of the 
interest of any partner in the firm. 

(2)  The  provisions  of  sub-section  (1)  shall  not  apply  unless  the  conditions  specified  in  

sub-sections (1) and (2) of section 63 are fulfilled by the declarant. 

70. Applicability of certain provisions of Income-tax Act and of Chapter V of Wealth-tax Act.—
The provisions of Chapter XV of the Income-tax Act relating to liability in special cases and of section 
189  of  that  Act  or  of  Chapter  V  of  the  Wealth-tax  Act,  1957  (27  of  1957)  relating  to  liability  to 
assessment in special cases shall, so far as may be, apply in relation to proceedings under this Chapter as 
they apply in relation to proceedings under the Income-tax Act or, as the case may be, the Wealth-tax Act. 

71. Chapter not to apply to certain persons.—The provisions of this Chapter shall not apply— 

(a) to any person in respect of whom an order of detention has been made under the Conservation 

of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (52 of 1974): 

Provided that— 

(i) such order of detention, being an order to which the provisions of section 9 or section 12A 
of  the  said  Act  do  not  apply,  has  not  been  revoked  on  the  report  of  the  Advisory  Board  under 
section 8 of the said Act or before the receipt of the report of the Advisory Board; or 

(ii) such order of detention, being an order to which the provisions of section 9 of the said Act 
apply, has not been revoked before the expiry of the time for, or on the basis of, the review under 
sub-section (3)  of section 9,  or  on the report of the Advisory  Board  under  section  8, read  with 
sub-section (2) of section 9, of the said Act; or 

(iii) such order of detention, being an order to which the provisions of section 12A of the said 
Act  apply,  has  not  been  revoked  before  the  expiry  of  the  time  for,  or  on  the  basis  of,  the  first 
review under sub-section (3) of that section, or on the basis of the report of the Advisory Board 
under section 8, read with sub-section (6) of section 12A, of the said Act; or 

28 

 
(iv) such order of detention has not been set aside by a court of competent jurisdiction; 

(b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of the 
Indian  Penal  Code  (45  of  1860),  the  Narcotic  Drugs  and  Psychotropic  Substances  Act,  1985  
(61  of  1985),  the  Unlawful  Activities  (Prevention)  Act,  1967  (37  of  1967),  the  Prevention  of 
Corruption Act, 1988 (49 of 1988); 

(c)  to  any  person  notified  under  section  3  of  the  Special  Court  (Trial  of  Offences  Relating  to 

Transactions in Securities) Act, 1992 (27 of 1992). 

(d)  in  relation  to  any  undisclosed  asset  located  outside  India  which  has  been  acquired  from 
income chargeable to tax under the Income-tax Act for any previous year relevant to an assessment 
year prior to the assessment year beginning on the 1st day of April, 2016— 

(i)  where  a  notice  under  section  142  or  sub-section  (2)  of  section  143  or  section  148  or 
section  153A  or  section  153C  of  the  Income-tax  Act  has  been  issued  in  respect  of  such 
assessment year and the proceeding is pending before the Assessing Officer; or 

(ii) where a search has been conducted under section 132 or requisition has been made under 
section  132A  or  a  survey  has  been  carried  out  under  section  133A  of  the  Income-tax  Act  in  a 
previous year and a notice under sub-section (2) of section 143 for the assessment year relevant to 
such previous year or a notice under section 153A or under section 153C of the said Act for an 
assessment year relevant to any previous year prior to such previous year has not been issued and 
the time for issuance of such notice has not expired; or 

(iii) where any information has been received by the competent authority under an agreement 
entered into by the Central Government under section 90 or section 90A of the Income-tax Act in 
respect of such undisclosed asset. 

Explanation.—For  the  purpose  of  this  sub-clause  asset  shall  include  a  bank  account  whether 

having any balance or not. 

72. Removal of doubts.—For the removal of doubts, it is hereby declared that— 

(a)  save  as  otherwise  expressly  provided  in  the  Explanation  to  sub-section  (1)  of  section  69, 
nothing  contained  in  this  Chapter  shall  be  construed  as  conferring  any  benefit,  concession  or 
immunity on any person other than the person making the declaration under this Chapter; 

(b) where any declaration has been made under section 59 but no tax and penalty has been paid 
within the time specified under section 60 and section 61, the value of such asset shall be chargeable 
to tax under this Act in the previous year in which such declaration is made; 

(c)  where  any  asset  has  been  acquired  or  made  prior  to  commencement  of  this  Act,  and  no 
declaration in respect of such asset is made under this Chapter, such asset shall be deemed to have 
been  acquired  or  made  in  the  year  in  which  a  notice  under  section  10  is  issued  by  the  Assessing 
Officer and the provisions of this Act shall apply accordingly. 

CHAPTER VII 

GENERAL PROVISIONS 

73. Agreement with foreign countries or specified territories.—(1) The Central Government may 

enter into an agreement with the Government of any other country— 

29 

 
(a) for exchange of information for the prevention of evasion or avoidance of tax on undisclosed 
foreign income chargeable under this Act or under the corresponding law in force in that country, or 
investigation of cases of such evasion or avoidance; 

(b) for recovery of tax under this Act and under the corresponding law in force in that country. 

(2)  The  Central  Government  may  enter  into  an  agreement  with  the  Government  of  any  specified 

territory outside India for the purposes specified in sub-section (1). 

(3)  The  Central  Government  may,  by  notification,  make  such  provisions  as  may  be  necessary  for 

implementing the agreements referred to in sub-sections (1) and (2). 

(4) Any specified association in India may enter into an agreement with any specified association in 
the specified territory outside India for the purposes of sub-section (1) and the Central Government may 
by  notification  make  such  provisions  as  may  be  necessary  for  adopting  and  implementing  such 
agreement. 

(5) Any term used but not defined in this Act or in the agreement referred to in sub-sections (1), (2) or 
sub-section (4) shall, unless the context otherwise requires, and is not inconsistent with the provisions of 
this  Act  or  the  agreement,  have  the  meaning  assigned  to  it  in  the  notification  issued  by  the  Central 
Government and such meaning shall be deemed to have effect from the date on which the said agreement 
came into force. 

74. Service of notice generally.—(1) The service of any notice, summons, requisition, order or any 
other communication under this Act (herein referred to in this section as ―communication‖) may be made 
by delivering or transmitting a copy thereof, to the person named therein,— 

(a) by post or by such courier service as may be approved by the Board; 

(b)  in  such  manner  as  provided  under  the  Code  of  Civil  Procedure,  1908  (5  of  1908)  for  the 

purposes of service of summons; 

(c) in the form of any electronic record as provided in Chapter IV of the Information Technology 

Act, 2000 (21 of 2000); or 

(d) by any other means of transmission of documents, including fax message or electronic mail 

message, as may be prescribed. 

(2) The Board may make rules providing for the addresses including the address for electronic mail or 
electronic mail message to which the communication referred to in sub-section (1) may be delivered or 
transmitted to the person named therein. 

(3)  In  this  section,  the  expressions  ―electronic  mail‖  and  ―electronic  mail  message‖  shall  have  the 
same  meanings  as  assigned  to  them  in  the  Explanation  to  section  66A  of  the  Information  Technology  
Act, 2000 (21 of 2000). 

75. Authentication of notices and other documents.—(1) A notice or any other document required 
to be issued, served or given for the purposes of this Act by any tax authority shall be  authenticated by 
that authority. 

(2) Every notice or other document to be issued, served or given for the purposes of this Act by any 
tax authority shall be deemed to be authenticated, if the name and office of a designated tax authority is 
printed, stamped or otherwise written thereon. 

30 

 
(3) In this section, a designated tax authority shall mean any tax authority authorised by the Board to 
issue,  serve  or  give  such  notice  or  other  document  after  authentication  in  the  manner  as  provided  in  
sub-section (2). 

76.  Notice  deemed  to  be  valid  in  certain  circumstances.—(1)  A  notice  which  is  required  to  be 
served upon a person for the purposes of assessment under this Act shall be deemed to have been duly 
served  upon  him  in  accordance  with  the  provisions  of  this  Act,  if  the  person  has  appeared  in  any 
proceeding or co-operated in any inquiry relating to an assessment. 

(2)  The  person,  referred  to  in  sub-section  (1),  shall  be  precluded  from  taking  any  objection  in  any 

proceeding or inquiry under this Act that the notice was— 

(a) not served upon him; 

(b) not served upon him in time; or 

(c) served upon him in an improper manner. 

(3)  The  provisions  of  this  section  shall  not  apply,  if  the  person  has  raised  the  objection  before  the 

completion of the assessment. 

77.  Appearance  by  approved  valuer  in  certain  matters.—(1)  Any  assessee  who  is  entitled  or 
required  to  attend  before  any  tax  authority  or  the  Appellate  Tribunal,  in  connection  with  any  matter 
relating  to  the  valuation  of  any  asset,  may  attend  through  a  valuer  approved  by  the  Principal 
Commissioner or the Commissioner in accordance with such rules as may be prescribed. 

(2) The provisions of sub-section (1) shall not apply in a case where the assessee is required to attend 

personally for examination on oath or affirmation under section 8. 

78.  Appearance  by  authorised  representative.—(1)  Any  assessee  who  is  entitled  or  required  to 
attend before any tax authority or the Appellate Tribunal, in connection with any proceeding under this 
Act, may attend through an authorised representative. 

(2) The provisions of sub-section (1) shall not apply in a case where the assessee is required to attend 

personally for examination on oath or affirmation under section 8. 

(3) In this section, ―authorised representative‖ means a person authorised by the assessee in writing to 

appear on his behalf, being— 

(a)  a  person  related  to  the  assessee  in  any  manner,  or  a  person  regularly  employed  by  the 

assessee; 

(b) any officer of a scheduled bank with which the assessee maintains a current account or has 

other regular dealings; 

(c) any legal practitioner who is entitled to practice in any civil court in India; 

(d) an accountant; 

(e)  any  person  who  has  passed  any  accountancy  examination  recognised  in  this  behalf  by  the 

Board; or 

(f) any person who has acquired such educational qualifications as may be prescribed. 

(4)  The  following  persons  shall  not  be  qualified  to  represent  an  assessee  under  sub-section  (1), 

namely:— 

(a) a person who has been dismissed or removed from Government service; 

31 

 
(b) a legal practitioner, or an accountant, who is found guilty of misconduct in his professional 

capacity by any authority entitled to institute disciplinary proceedings against him; 

(c) a person, not being a legal practitioner or an accountant, who is found guilty of misconduct in 

any tax proceedings by such authority as may be prescribed. 

(5)  The  Principal  Chief  Commissioner  or  the  Chief  Commissioner  may,  by  an  order  in  writing, 
specify the period up to which the disqualification under sub-section (4) shall continue, having regard to 
the nature of misconduct and such disqualification shall not exceed— 

(i) in case of clauses (a) and (c) of sub-section (4), a period of ten years; 

(ii)  in  case  of  clause  (b)  of  sub-section  (4),  the  period  for  which  the  legal  practitioner  or  an 

accountant is not entitled to practice. 

(6) A person shall not be allowed to appear as an authorised representative, if he has committed any 
fraud or misrepresented the facts which resulted in loss to the revenue and that person has been declared 
as such by an order of the Principal Chief Commissioner or the Chief Commissioner. 

Explanation.—In this section, ―accountant‖ means a chartered accountant as defined in clause (b) of 
sub-section  (1)  of  section  2  of  the  Chartered  Accountants  Act,  1949  (38  of  1949)  who  holds  a  valid 
certificate of practice under sub-section (1) of section 6 of that Act. 

79.  Rounding  off  of  income,  value  of  asset  and  tax.—(1)  The  amount  of  undisclosed  foreign 
income and asset computed in accordance with this Act shall be rounded off to the nearest multiple of one 
hundred rupees. 

(2)  Any  amount  payable  or  receivable  by  the  assessee  under  this  Act  shall  be  rounded  off  to  the 

nearest multiple of ten rupees. 

(3)  The  method  of  rounding  off  under  sub-section  (1)  or  sub-section  (2),  shall  be  such  as  may  be 

prescribed. 

80. Congnizance of offences.—No court inferior to that of a metropolitan magistrate or a magistrate 

of the First Class shall try any offence under this Act. 

81. Assessment not to be invalid on certain grounds.—No assessment, notice, summons or other 
proceedings, made or issued or taken or purported to have been made or issued or taken in pursuance of 
any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any 
mistake, defect or omission in such assessment, notice, summons or other proceeding if such assessment, 
notice,  summons  or  other  proceeding  is  in  substance  and  effect  in  conformity  with  or  according  to  the 
intent and purpose of this Act. 

82. Bar of suits in civil courts.—(1) No suit shall be brought in any civil court to set aside or modify 

any proceeding taken or order made under this Act. 

(2)  No  prosecution,  suit  or  other  proceeding  shall  lie  against  the  Government  or  any  officer  of  the 

Government, for anything in good faith done or intended to be done, under this Act. 

83.  Income-tax  papers  to  be  available  for  purposes  of  this  Act.—Notwithstanding  anything 
contained in the Income-tax Act, all information contained in any statement or return made or furnished 
under the provisions of that Act or obtained or collected for the purposes of the said Act may be used for 
the purposes of this Act. 

84.  Application  of  provisions  of  Income-tax  Act.—The  provisions  of  clauses  (c)  and  (d)  of  
sub-section (1) of section 90, clauses (c) and (d) of sub-section (1) of section 90A, sections 119, 133, 134, 

32 

 
135, 1[138, 144A] Chapter XV and sections 237, 240, 245, 280, 280A, 280B, 280D, 281, 281B and 284 of 
the Income-tax Act shall apply with necessary modifications as if the said provisions refer to undisclosed 
foreign income and asset instead of to income-tax. 

85. Power to make rules.—(1) The Board may, subject to the approval of the Central Government, 

by notification in the Official Gazette, make rules for carrying out the provisions of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(a)  the  manner  of  determination  of  the  value  of  an  undisclosed  foreign  asset  referred  to  in  

sub-section (2) of section 3; 

(b) the tax authority to be prescribed for any of the purposes of this Act; 

(c) the form and manner of service of a notice of demand under section 13; 

(d)  the  form  in  which  any  appeal,  revision  or  cross-objection  may  be  filed  under  this  Act,  the 

manner in which they may be verified and the fee payable in respect thereof; 

(e) the form in which the Tax Recovery Officer may draw up the statement of tax arrears under 

sub-section (1) of section 31; 

(f)  the  manner  in  which  the  sum  is  to  be  paid  to  the  credit  of  Central  Government  under  

sub-section (2) or sub-section (5) of section 32; 

(g)  the  manner  in  which  the  Tax  Recovery  Officer  shall  send  a  certificate  referred  to  in  

sub-section (2) of section 33; 

(h) the form in which a declaration referred to in sub-section (1) of section 62 is to be made and 

the manner in which it is to be verified; 

(i) the means of transmission of documents under clause (d) of sub-section (1) of section 74; 

(j)  the  procedure  for  approval  of  a  valuer  by  the  Principal  Commissioner  or  the  Commissioner 

under section 77; 

(k) the educational qualifications required, to be an authorised representative under clause (f) of 

sub-section (3) of section 78; 

(l) the tax authority under clause (c) of sub-section (4) of section 78; 

(m) the method of rounding off of the amount referred to in sub-section (1) or sub-section (2) of 

section 79; 

(n) any other matter which by this Act is to be, or may be, prescribed. 

(3) The power to make rules conferred by this section shall include the power to give retrospective 
effect to the rules or any of them from a date not earlier than the date of commencement of this Act and 
no retrospective effect shall be given to any rule so as to prejudicially affect the interest of assessees. 

(4) The Central Government shall cause every rule made under this Act to be laid as soon as may be 
after  it  is  made  before  each  House  of  Parliament  while  it  is  in  session  for  a  total  period  of  thirty  days 
which may be comprised in one session or in two or more successive sessions and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 

1. Subs. by Act 23 of 2019, s. 208, for the figures ―138‖ (w.e.f. 1-9-2019). 

33 

 
                                                           
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule. 

86. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of 
this Act, the Central Government may, by order, not inconsistent with the provisions of this Act, remove 
the difficulty: 

Provided that no such order shall be made after the expiry of a period of two years from the date on 

which the provisions of this Act come into force. 

(2) Every order made under this section shall be laid before each House of Parliament. 

87.  Amendment  of  section  2  of  Act  54  of  1963.—In  section  2  of  the  Central  Boards  of  Revenue  

Act, 1963, in sub-clause (1) of clause (c),— 

(a) in item (vii), the word ―and‖ occurring at the end shall be omitted; and 

(b) after item (ix) as so amended, the following item shall be inserted, namely:— 

―(x)  the  Black  Money  (Undisclosed  Foreign  Income  and  Assets)  and  Imposition  of  Tax  

Act, 2015; and‖ 

88.  Amendment  of  Act  of  15  of  2003.—In  the  Prevention  of  Money-laundering  Act,  2002,  in  the 
Schedule, in Part C, after entry (3), relating to the offences against property under Chapter XVII of the 
Indian Penal Code (45 of 1860), the following entry shall be inserted, namely:— 

―(4) The offence of wilful attempt to evade any tax, penalty or interest referred to in section 51 of the 

Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.‖. 

34 

 
